Friday, January 6, 2017

Fluctuating Bitcoin

Yesterday, the market of Bitcoin had a historic movement.

The price of Bitcoin marked the highest ever as over as 150,000 JPY (1,300 USD). And soon after this, it fell by 30 % rapidly.

Recent Bitcoin market is so strong that its price has reached the level of that before Mt. Gox incident. In my sense, the recent rapid increase in its value was a fruit of overestimation. Thus, I prospected this falling movement. Nonetheless, it was surprising for me to see such a dramatic change.

Some Bitcoin users are excited to see this movement as it is the taste of Bitcoin. I agree with it. However, it is not favorable for Bitcoin to show such a fluctuating price. It brings fear to consumers, leading to hesitation from utilizing Bitcoin as a way of payment.

Chinese consumers may be responsible for this movement yesterday. It is said that approximately 90% of Bitcoin users is Chinese. As a result, the price of Bitcoin is deeply connected with the price of Renminbi. It means that the policy of Chinese government is quite influential to the stability of Bitcoin. If China regulates Bitcoin deals, its price will immensely fall. It is ironic that Bitcoin as a decentralized currency is under control of a particular government.